I welcome this very generous support for every household in the country and especially the most vulnerable. We have all been hit very hard by the global rise in energy prices and inflation due to pandemic supply disruption and the war in Ukraine.
The support for those on benefits, older people and the disabled will make a huge difference to people who have been really struggling. This is something I have spoken to the Chancellor about on several occasions ahead of today’s announcement by him.
The use of direct payments through the existing benefits system and local authorities means the money should get through quickly to those most in need.
This is an absolutely consistent approach by a government which has already protected lives and livelihoods throughout the pandemic.
It brings cost-of-living support by this government up to £37 billion this year.
I also welcome and fully support the smart model the Chancellor has used for the three-year 25% Energy Profits Levy on oil and gas companies’ profits. It will raise money to help pay for this support but also encourage the investment we need to continue to grow our economy.
The good management of the economy to protect our long-term growth with a focus on investment is vital. Alongside the new levy, the new Investment Allowance will incentivise companies to invest by saving them 91p for every £1 they invest.
This measure nearly doubles the tax relief available. It means the more a company invests, the less tax it will pay. This can only be good for jobs and skills, innovation and productivity – all weapons we must use in the fight against higher prices.
What has been announced today is allowing the Government to support us all – it is far more comprehensive and better thought out than the other parties’ proposals – and, crucially, it will encourage investment to ensure we grow the economy.